All Forum Posts by: Daniel Walker

Ryan,  if she asked you to wait 5 days than that agent knew other offers were expected.   The right thing for you and the seller would be for the agent to announce a highest and best.   A buyers agent would not have allowed 5 days without doing some extra info gathering as to why they needed so much time.   Once they counter, the buyer has control for 24 hours unless indicated elsewhere on the counter. 

Many investors are under the impression they can save money by going directly to the listing agent.   I felt the same when I was only investing, before I had my real estate license.   The fact is if the listing agent can drop their commissions for representing  two parties, they can do it for representing one side too.  The buyers agent, if they're looking out for your best interest should come down too.  Meaning if an agent will come down to 4% if she works both sides, then both buyer and sellers agent should come down to 2% each. Especially if you found the property and brought it to the buyers agebt.  To top it off, there is no way you'll get full disclosure working with the listing agent as a buyer.  The listing agent represents the sellers best interest. If they switch to transaction broker, they're still representing the transaction, not the persons.   

I firmly believe if youre in a state where the seller pays all commissions, you're hurting yourself not using a buyers agent.

That's one example of why you should use a buyers agent. Only if represented are you protected from something like this for the buyers agent can file a claim and the board can do the research. It sounds like the listing agent brought the buyer and made both sides. I don't know of a state where the buyers pay their agent. The agent can do all the dirty work for you and they work for you for free.

Heather, 

I'd like to chime in if that is OK.   

In terms of location, it depends on what you're looking for.   As for your price point though, you'll probably want to get your feet wet in Panama City Beach.   The other locations are just over that price.   In fact, there are only 3 condos in Destin under 200k and they are all 1 bedrooms built in the mid 70's.   While some of these do have fixer upper potential, age brings with it assessments for repairs and upgrades as well as slower appreciation rates.  

In Panama City Beach, you have the chance to be in a relatively newer building.   You would still be looking at a one bedroom (sometimes with bunk room) that can sleep 6 with the sleeper sofa.    The average income for 150 days is the mid 20's gross, yet I have seen some do much better.   Even have seen a select few push 40k.   But this all depends on the quality of the condo and how good it looks in your online advertising, how much you use it, and if you're using a good management company or not.   Management companies will charge 20-30% management fees.   I would suggest going into it with the plan to manage it yourself (VRBO) in a couple years or immediately if you're comfortable doing so.  All you need is a GOOD cleaning crew and a handyman.  

On the HOA's, as a previous poster said, you'll be in that $200-$500 a month range. In most cases, especially in newer buildings, most of your bills are included. What you can count on paying for is property taxes, inside insurance (HO6) and power bill. Water sewer, trash, cable and internet are often times included in the HOA.

In Panama City Beach, the best 3 options available ( all one bedrooms) for rental income IMO will be Seychelles on the east end, Tidewater Beach on the west end and Emerald Beach Resort in the middle. On Emerald Beach Resort financing can be difficult (50% down) because half of the building is Wyndham time shares. Regency Towers (built in the 70's) has a 2 bedroom gulf front but this building was built in the late 70's. HOA is healthy and lots of repeat renters but there is currently an assessment levied for resurfacing and painting of the exterior.

I hope this helps some. 

I'd like to chime in. You can break even if do e correctly. Especially if you rent it yourself. There's also more options in lending besides the typical 20% cash outlay. The average ROI without a mortgage is 6-8 but that does but include the deductions and the fact you can use the place when you want to. Come the first week of May and a week in October for the prettiest months and for the sake of rental income. My customers with financing are breaking even nearly every year. I'll go over options and know how's when we speak. All I work is second homes. I can do primary residential but have not since dec 2014. I'll share with you everything I know and you can take it from there. Thanks

Welcome to the area!

Bill, the renters always pay the sales and use tax for vacation rentals.   It is common practice for them to pay the 11.5% for Walton and Okaloosa counties and 12.5% for Bay County, and the renters pay the cleaning fees. 

One of these days, I'll get over there to do the same.  Good luck bud!

Tony, 

Panama City Beach is the best bang for the buck if you're looking for gulf front vacation rentals.  The markets in Destin and PCB are appreciating at a normal pace now finally.  Last year PCB gulf front condos were up 9.1% from Dec 14 to Dec 15.    There is still room for growth and now there are more buyers inquiring than anytime since the market collapse.  Jan is usually the slowest month of the year for real estate sales, but this Jan has been better for most agents than any month the last 3 months of the year.  If you can manage it yourself through VRBO,com, you can capitalize on no management fees.  In this scenario 10% returns are available.   While nothing is ever guaranteed, there are steps you can take to increase the rentals.   There are certain condo buildings that are better for vacation rentals than others.   And there are certain condos floorplans in each building that are better for rentals than others.    Good luck in your search!   

jack cotton suggest calling the property appraiser and paying for it.  This was my plan for this month.  Apparently they can print sizes that cover an entire wall

There are a few contacts I have for hard money lending even though they have not put a deal together for me just yet.   There are so many creative products out there now.  Check out my Facebook Page Emerald Coast Beach Homes/Premier Property Group.  Pinned at the top are the 8 most creative programs in the area right now.  I will be updating this in Jan as well.   I personally cover PCB, Beaches of South Walton, Destin and Okaloosa Island.   Primarily vacation rentals and there is money to be made there on top of (as the poster suggested) appreciation potential.   I will be happy to explain if you'd like to message me.    Talk soon!